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IN THE SUPREME COURT OF THE STATE OF OREGON 1000 FRIENDS OF OREGON, Respondent, Cross-Petitioner Below, Respondent on Review, DEPARTMENT OF LAND CONSERVATION AND DEVELOPMENT, Intervenor Below, Respondent on Review, v. JACKSON COUNTY, Respondent before LUBA, OR SOLAR 7, LLC Petitioner, Cross-Respondent Below, Petitioner on Review. Land Use Board of Appeals Case No. 2017-066 Court of Appeals Case No. A166360 Supreme Court Case No. S066118 REPLY BRIEF ON MERITS – PETITIONER ON REVIEW Review of the Decision of the Court of Appeals on Judicial Review of the Final Order of the Land Use Board of Appeals Court of Appeals Opinion Filed: May 31, 2018 Author of Opinion: Sercombe, Senior Judge Concurring: Armstrong, Presiding Judge; Tookey, Judge Continued … February 2019 February 7, 2019 10:17 AM

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IN THE SUPREME COURT OF THE STATE OF OREGON

1000 FRIENDS OF OREGON,

Respondent,

Cross-Petitioner Below,

Respondent on Review,

DEPARTMENT OF LAND

CONSERVATION AND

DEVELOPMENT,

Intervenor Below,

Respondent on Review,

v.

JACKSON COUNTY,

Respondent before LUBA,

OR SOLAR 7, LLC

Petitioner,

Cross-Respondent Below,

Petitioner on Review.

Land Use Board of Appeals

Case No. 2017-066

Court of Appeals Case No. A166360

Supreme Court Case No. S066118

REPLY BRIEF ON MERITS – PETITIONER ON REVIEW

Review of the Decision of the Court of Appeals on Judicial

Review of the Final Order of the Land Use Board of Appeals

Court of Appeals Opinion Filed: May 31, 2018

Author of Opinion: Sercombe, Senior Judge

Concurring: Armstrong, Presiding Judge; Tookey, Judge

Continued …

February 2019

February 7, 2019 10:17 AM

16360-008(d)\1415177_7

Josh Newton, OSB No. 983087 Meriel L. Darzen, OSB No. 113645

Ellen H. Grover, OSB No. 991978 1000 Friends of Oregon

Benjamin Eckstein, OSB No. 175090 133 SW Second Avenue

KARNOPP PETERSEN LLP Portland, OR 97204

360 SW Bond Street, Suite 400 [email protected]

Bend, OR 97702

[email protected]

[email protected]

[email protected]

Attorneys for Petitioner on Review Attorney for Respondent on Review

Ellen F. Rosenblum, OSB No. 753239

Attorney General

Benjamin Gutman, OSB No. 160599

Solicitor General

Denise G. Fjordbeck, OSB No. 822578

Attorney-in-Charge

Civil/Administrative Appeals

Oregon Department of Justice

1162 Court Street NE

Salem, OR 97301-4096

[email protected]

Attorneys for Intervenor Department of

Land Conservation and Development

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INDEX

I. INTRODUCTION ...................................................................................... 1

II. ARGUMENT.............................................................................................. 3

A. Local Governments May Adopt Goal Exceptions to Allow

Nonfarm Uses Authorized by Goal 3 (Agricultural Lands) But

That Do Not Comply With Approval Standards For Those Uses. .. 3

B. The Facility Exceeds The Size Approval Standards For Siting

Photovoltaic Solar Power Generation Facilities on Agricultural

Land. ................................................................................................. 4

C. Jackson County Properly Justified a “Reasons” Exception to

Goal 3 to Allow the Facility to be Sited on High-Value Farmland. 5

1. The Rural Industrial Development Reason For Justifying an

Exception. .............................................................................. 8

2. The Residual Reason For Justifying an Exception. .............14

III. CONCLUSION ........................................................................................17

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TABLE OF AUTHORITIES

Cases

1000 Friends of Oregon v. LCDC (Curry Co.),

301 Or 447, 461, 724 P2d 268 (1986) .................................................................... 7

1000 Friends of Oregon v. Wasco County Court,

299 Or 344, 703 P2d 207 (1985) ......................................................................8, 13

Abu-Adas v. Employment Dep’t, Food Employers, Inc.,

325 Or 480, 940 P2d 1219 (1997) .......................................................................... 7

City of Klamath Falls v. Envt’l. Quality Comm’n,

318 Or 532, 543, 870 P2d 825 (1994) ..................................................................14

State v. Gaines,

346 Or 160, 206 P3d 1042 (2009) .......................................................................... 7

Stull v. Hoke,

326 Or 72, 79-80, 948 P2d 722 (1997) ................................................................10

Statutes

ORS 174.010 .............................................................................................................. 7

ORS 197.015 ........................................................................................................3, 15

ORS 197.251 ............................................................................................................16

ORS 197.732 .................................................................................................... passim

ORS 197.850 ............................................................................................................13

ORS 215.283 ..........................................................................................................2, 4

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Rules

OAR 660-004-0000......................................................................................... 3, 7, 15

OAR 660-004-0010................................................................................................3, 4

OAR 660-004-0020.................................................................................................... 6

OAR 660-004-0022.......................................................................................... passim

OAR 660-009-0005..............................................................................................9, 10

OAR 660-009-0010.................................................................................................... 9

OAR 660-022-0010……………………………………………………………….10

OAR 660-033-0130..................................................................................... 1, 4, 5, 11

Other Authorities

Or Laws 1983, ch 827, § 19 ....................................................................................... 8

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I. INTRODUCTION

LCDC has recognized that its rules should offer an “adequate balance

between agricultural lands protection and important power generation needs.”

PET APP-1.1 LCDC has struck that balance through OAR 660-033-0130(38),

which it intended to provide “reasonable opportunities to site photovoltaic solar

power generation facilities on productive agricultural lands * * *.” PET APP-2.

The rule imposed size limitations on such facilities that vary according to the

value of the farmland on which a particular facility is sited. In accordance with

ORS 197.732(3), LCDC also allows the siting of oversize facilities pursuant to

a goal exception.

OR Solar 7 proposes to site the Facility on high-value farmland in

Jackson County. The Facility exceeds the size approval standards under

OAR 660-033-0130(38). Consequently, OR Solar 7 sought and obtained a

“reasons” exception to Goal 3 pursuant to the “rural industrial development”

reason and, alternatively, the “residual” reason. DLCD and 1000 Friends

dispute that either reason justifies the proposed siting of the Facility, arguing

that the Facility is not “industrial” and that the Goal 13 (Energy Conservation)

requirement to conserve all forms of energy does not permit Jackson County to

1 Unless defined in this brief, capitalized terms are defined in the Brief on

Merits – Petitioner on Review, filed by OR Solar 7 on November 15, 2018

(“OR Solar 7 Merits Brief”).

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promote the development of renewable energy as a means to achieve the

Goal 13 mandate.

DLCD’s and 1000 Friends’ arguments, however, acquiesce to an

insurmountable logical flaw, which, if accepted, would preclude the siting of an

oversize photovoltaic solar power generation facility on any Goal 3 lands

anywhere in the state, not just the Site. That is not the result that LCDC

intended when it sought to balance agricultural lands protection with important

power generation needs and expressly authorized use of the goal exception

process to site oversize photovoltaic power generation facilities on agricultural

lands. While DLCD and 1000 Friends may object to LCDC’s policy choices,

they may not seek to override those legislatively-authorized choices under the

guise of rule interpretation.

The Facility is not an urban use but, rather, is a nonfarm use

conditionally allowed by statute. ORS 215.283(2)(g). The Facility preserves

the Site as high-value farmland and facilitates agricultural production on

adjacent land. Rec. 0313; Rec. 0074. The Facility would also temporarily

occupy the Site for 30 years before the Site returns to its original condition. Id.;

ER-7. In that sense, temporary use of the Site for the Facility is akin to

fallowing the Site. DLCD’s and 1000 Friends’ speculative concerns about

urbanization are not supported by the law or the record and should be

disregarded.

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II. ARGUMENT

A. Local Governments May Adopt Goal Exceptions to Allow Nonfarm

Uses Authorized by Goal 3 (Agricultural Lands) But That Do Not

Comply With Approval Standards For Those Uses.

Local governments generally must prepare and adopt comprehensive

plans in compliance with the Statewide Planning Goals, which are “mandatory

statewide land use planning standards.” ORS 197.015(5), (8). But, in certain

circumstances, a local government may include comprehensive plan provisions

that are applicable to specific properties or situations and that do not “comply

with some or all goal requirements.” See generally ORS 197.732. Those plan

provisions are known as goal “exceptions.” Id.

An exception may authorize a proposed land use when the use is either

(a) not allowed by an applicable goal, or (b) authorized by the goal but

inconsistent with the approval standards for that type of use. ORS 197.732(3);

OAR 660-004-0000(2). The intent of the exceptions process is to provide

“necessary flexibility” in the application of the Statewide Planning Goals.

OAR 660-004-0000(3). With respect to Goal 3 (Agricultural Lands), an

exception may authorize nonfarm uses allowed in the exclusive farm use zone

(EFU) but that cannot comply with the applicable “approval standards.”

OAR 660-004-0010(1)(a).

This review arises out of a proposed nonfarm use allowed in the EFU

zone but larger than the applicable approval standards allow—to wit, the siting

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of the Facility. See ORS 215.283(2)(g) (nonfarm use includes “[c]ommercial

utility facilities for the purpose of generating power for public use by sale”).

An exception may, thus, authorize siting the Facility notwithstanding the

applicable approval standards. OAR 660-004-0010(1)(a). Unlike the Court of

Appeals below, no party on review, including amici curiae, quarrels with that

proposition.2

This review begs the following questions: Does the Facility comply with

the applicable approval standards imposed by LCDC? If not, was Jackson

County authorized to adopt an exception to Goal 3 to allow the siting of the

Facility on high-value farmland within the EFU zone? For the reasons

explained below, the Facility exceeds the size approval standards imposed by

LCDC, but a reasons exception to Goal 3 justifies the siting of the Facility on

high-value farmland.

B. The Facility Exceeds The Size Approval Standards For Siting

Photovoltaic Solar Power Generation Facilities on Agricultural

Land.

LCDC has adopted approval standards relating to the size of photovoltaic

solar power generation facilities to be sited on agricultural land as a conditional

use. OAR 660-033-0130(38)(f)-(h). LCDC has sought to minimize the impacts

2 Compare ER-61 (“exception process to an allowed or required use

under a goal can only be used to justify a different use than the use allowed by

the goal”) with the briefs on the merits filed by DLCD (“DLCD Merits Brief”),

1000 Friends (“1000 Friends Merits Brief”), amicus curiae Oregon Solar

Energy Industries Association (“OSEIA Amicus Brief”), and amicus curiae

Oregon Farm Bureau Federation (“OFBF Amicus Brief”).

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of such facilities by limiting the size of the facilities in accordance with the

classification of the land on the site. Id. For high-value farmland, the size

approval standard applicable to such facilities is 12 acres. OAR 660-033-

0130(38)(f). LCDC has also expressly authorized the siting of oversize

facilities pursuant to an exception. OAR 660-033-0130(38)(f)-(h).

No party disputes or has disputed that the Facility would be located on

high value farmland and that the Facility would exceed the applicable 12-acre

size approval standard in OAR 660-033-0130(38)(f). OR Solar 7, thus, sought

and obtained an exception to Goal 3 to establish a limited use zoning district for

a commercial power generation facility on the Site. ER-1-8.

OR Solar 7 now turns to whether Jackson County properly adopted an

exception to Goal 3 to allow the siting of the Facility on high-value farmland

within the EFU zone. The short but unequivocal answer is yes.

C. Jackson County Properly Justified a “Reasons” Exception to Goal 3

to Allow the Facility to be Sited on High-Value Farmland.

A local government may adopt an exception to a goal in three

circumstances. ORS 197.732(2)(a)-(c). Germane to this review, a local

government may adopt a goal exception if “reasons justify why the state policy

embodied in the applicable goals should not apply” and certain additional

standards are met. ORS 197.732(2)(c)(A)-(C). That exception is commonly

known as the “reasons” exception.

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DLCD expressly concedes that a local government may adopt a reasons

exception to authorize the siting of a photovoltaic solar power generation

facility on high value farmland even though it exceeds the applicable size

approval standards. DLCD Merits Brief pp 12, 13 (citing the reasons exception

in ORS 197.732(c) as being the “applicable” exception pathway). 1000 Friends

also generally accepts that the reasons exception pathway is the appropriate

course to follow here. 1000 Friends Merits Brief pp 15-17. The crux of the

parties’ dispute centers narrowly on whether Jackson County’s decision

demonstrates that the Facility satisfies the standards underpinning the reasons

exception. See ORS 197.732(4) (local government approving exception must

demonstrate that statutory standards have been met).

LCDC’s rules setting forth its requirements for justifying a reasons

exception are set forth at OAR 660-004-0020 and OAR 660-004-0022. Those

rules are organized in accordance with the four substantive standards contained

in ORS 197.732(2)(c). Compare OAR 660-004-0020(2)(a)-(d) with

ORS 197.732(2)(c)(A)-(D). The precise issue on review is whether Jackson

County’s statement of reasons justifies why the state policy embodied in Goal 3

should not preclude development in this instance.

LCDC has enumerated 11 reasons that may justify a goal exception.

OAR 660-004-0022(1)-(11). Jackson County justified the exception to site the

Facility on high-value farmland pursuant to two alternative reasons:

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(a) the “residual” reasons exception, OAR 660-004-0022(1); and (b) the Rural

Industrial Development reason exception, OAR 660-004-0022(3). ER-1-8.

See 1000 Friends of Oregon v. LCDC (Curry Co.), 301 Or 447, 461, 724 P2d

268 (1986) (refers to OAR 660-004-0022(1) as the “residual” reasons rule).

DLCD and 1000 Friends dispute that either reason can justify why the state

policy embodied in Goal 3 should not prevent siting of the Facility.

OR Solar 7 first observes that DLCD incorrectly asserts that an exception

may be justified only in “unique circumstances.” DLCD Merits Brief p 4.

Nothing in the text of ORS 197.732 or Goal 2, Part II (Exceptions) so limits

when a local government may adopt an exception to a goal. See State v.

Gaines, 346 Or 160, 206 P3d 1042 (2009) (setting forth framework for statutory

interpretation); Abu-Adas v. Employment Dep’t, Food Employers, Inc., 325

Or 480, 940 P2d 1219 (1997) (setting forth framework for rule interpretation).

The Court should reject DLCD’s entreaty to insert provisions into the statute

and Goal 2, Part II, that have been omitted by the legislature and LCDC.

See ORS 174.010. That is especially so given that LCDC interprets the purpose

of the exception process as providing “necessary flexibility” in the application

of the Statewide Planning Goals. OAR 660-004-0000(3). Nothing in

ORS 197.732, Goal 2, Part II, or OAR chapter 660, division 4, authorizes the

heightened scrutiny suggested by DLCD.

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1000 Friends similarly misstates the law, arguing that an exception may

be justified only where there is a “compelling reason.” 1000 Friends Merits

Brief pp 1, 4. 1000 Friends purports to rely on Goal 2, Part II, and

1000 Friends of Oregon v. Wasco County Court, 299 Or 344, 703 P2d 207

(1985). But a close review of that case shows that the Oregon Supreme Court

referred to a prior version of Goal 2, Part II. Id. at 352 n 6. The Court

expressly noted that the 1983 legislature revised the exceptions process by

statute, citing Or Laws 1983, ch 827, § 19(a), codified as ORS 197.732. Id.

The Court observed that the statute “affected the standards for an exception.”

Id. Any “compelling reason” standard in former Goal 2, Part II was

legislatively abolished by ORS 197.732. Compare Goal 2, Part II (former) with

ORS 197.732 and Goal 2, Part II (current). 1000 Friends is mistaken to

suggest otherwise.

1. The Rural Industrial Development Reason For Justifying an

Exception.

Jackson County relied on subsection (c) of the rural industrial

development reason as justification for the exception, which provides, in part,

that “appropriate reasons and facts” for siting industrial development on

resource land outside an urban growth boundary include:

“use[s that] would have a significant comparative advantage due to

its location (e.g., near existing industrial activity, an energy

facility, or products available from other rural activities), which

would benefit the county economy and cause only minimal loss of

productive resource lands. * * * .”

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OAR 660-004-0022(3)(c). DLCD and 1000 Friends contend that the rural

industrial development reason cannot justify an exception to Goal 3 on two

grounds. DLCD Merits Brief pp 2-3, 14-22; 1000 Friends Merits Brief pp 6-7,

19-28. First, DLCD and 1000 Friends assert that the Facility is not “industrial”

development. Id. Second, DLCD and 1000 Friends argue that the Facility does

not have a “significant comparative advantage” due to its location. Id.

a. The Facility Is An Industrial Development.

Relying principally on the definition of “industrial use” in OAR 660-009-

0005(3), DLCD and 1000 Friends assert that the Facility is not “industrial”

because it does not provide some minimum level of employment activity.3

The definition of “industrial use” in OAR 660-009-0005(3), however, does not

apply to OAR chapter 660, division 4; its application is limited to OAR chapter

660, division 9, which applies to areas within an urban growth boundary.

OAR 660-009-0010(1). By its plain language and context, Division 9 and the

definitions contained therein do not govern rural industrial development outside

an urban growth boundary, such as the Facility. Id.

3 OR Solar 7 has briefed this issue below and incorporates that briefing by

reference here. Petitioner/Cross-Respondent OR Solar 7, LLC’s Answering

Brief, filed January 2, 2018, pp 11-25. DLCD and 1000 Friends also assert that

the Facility is not an industrial development because OAR 660-004-0022(3)

distinguishes between “industrial use” and “energy facility.” OR Solar 7 has

addressed that argument in its opening brief and incorporates the argument by

reference in this brief. OR Solar 7 Merits Brief pp 34-38.

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The timing of the promulgation of OAR 660-009-0005(3) further

confines the limited contextual weight, if any, accorded to that rule in

construing OAR 660-004-0022(3). See Stull v. Hoke, 326 Or 72, 79-80, 948

P2d 722 (1997) (rules provide context where those rules came into existence

contemporaneously with or before the rule at issue). LCDC promulgated

OAR 660-004-0022 in 1983. LCDC did not promulgate Division 9 until 1986.

OAR 660-009-0005(3) should not be used to modify the plain meaning and

context of “rural industrial development” because there is no evidence that

LCDC intended for that later-established definition to apply to OAR 660-004-

0022(3).

OAR 660-022-0010(4) further minimizes any remaining utility of

OAR 660-009-0005(3) as context for interpreting the meaning of “industrial

development” in OAR 660-004-0022(3). For purposes of OAR chapter 660,

division 22, “industrial use” means “the use of land primarily for the

manufacture, processing, storage, or wholesale distribution of products, goods,

or materials * * *.” OAR 660-022-0010(4). That definition does not refer to

employment activities. Contrary to DLCD’s and 1000 Friends’ assertions,

LCDC does not consider such activity to be an essential feature of industrial use

in all circumstances. Rather, the consistent theme contained in the plain and

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ordinary meaning of “industrial development” and its context is the

manufacture, production, or distribution of goods.4

Even if this Court determines that rural industrial development must

create employment activity, the substantial evidence in the record shows that

the Project will indeed create jobs. The Project will create one to three

permanent jobs. Rec. 0006; 0313; LUBA Rec. 0064. That level of employment

is consistent with LCDC’s notion of “rural” industrial development. See OAR

660-004-0022(3) (goal exception taken for industrial development on resource

land must be rural in nature). “Rural” development has characteristics of low

intensity, impact, and density. See Statewide Planning Goals (definitions). By

allowing the construction of photovoltaic solar power generation facilities on

high-value farmland as a conditional use, LCDC has determined that such

facilities possess those characteristics. OAR 660-033-0130 (38)(f).

The Facility, a photovoltaic solar power generation facility, possesses

characteristics of “rural” development as understood by LCDC. In addition to

being located on rural land outside the UGB, the Facility will cause no adverse

impacts or urbanization of surrounding rural land. ER-5-6 (Finding 2.6). It will

4 DLCD challenges the notion that the Project produces goods in the form

of electrical power for sale to an electric utility. DLCD asserts that goods are

commonly understood as “something manufactured or produced for sale.”

DLCD offers no analysis or authority supporting its assertion that electricity is

not a “good” in the ordinary meaning of the term, and it never answers why the

electrical power produced for sale by the Facility is not a good under DLCD’s

own definition of “goods.”

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also preserve and maintain the Site for agricultural use and enhance commercial

agricultural operations on the landowner’s remaining 445 acres of farmland.

Rec. 0074.

b. The Facility Has a Significant Comparative

Advantage Due to Its Location.

An appropriate reason for siting the Facility on the Site includes the fact

that the proposed use “would have a significant comparative advantage due to

its location (e.g., near existing industrial activity, an energy facility, or products

available from other rural activities), which would benefit the county economy

and cause only minimal loss of resource lands.” OAR 660-004-0022(3)(c).

Jackson County concluded that the “proximity of the Sage Substation provides

a significant comparative advantage, would benefit the local economy, and as

approved, does not involve a loss of resource lands.” ER-5-6 (Finding 2.6).

The County also found that:

“solar electricity generation facilities such as the proposed project

must be located near existing substations with available

transmission capacity in order to be economically viable. * * *

[I]n order to be feasible, the substation must have the requisite

transmission capacity as well as several other attributes.

“* * * Sage Substation is one of only several available within

Jackson County capable of supporting solar development such as

the [Facility] * * *.

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“[The Facility] will initially provide 100 construction jobs and at

least one-full time equivalent job during operations. Additionally,

the [Facility] will provide a revenue stream (via lease payments)

for property that exceeds the commercial benefit of the current

agricultural operations and will help support ongoing agricultural

activities on adjoining land. The development will also result in a

significant increase in the tax revenues received by the County for

the subject property. Thus, the proposed project will benefit the

local economy.

“[T]he construction of the [Facility] involves driving posts

supporting the solar panel arrays, with minimal soil compaction or

topsoil removal. As guaranteed by the bond required by the

Conditions of Approval * * * after 30 years the [Site] will be

returned to substantially the same condition it is in now and will

again be suitable for and capable of supporting agricultural

activity. As such, the impact to productive resource land is

temporary, and no resource lands will be permanently lost as a

result of the construction of the [Facility].”

Id. DLCD and 1000 Friends assert that the Sage Substation cannot, as a matter

of law, serve as the “locational attractor” for the Facility.5 OR Solar 7 has

already briefed this issue below and incorporates that briefing by reference

here. Petitioner Or Solar 7, LLC’s Corrected Opening Brief, filed December 6,

2017, pp 13-22.

5 1000 Friends also asserts that there is “no significant comparative

advantage that justifies the use of resource land” for the Facility. 1000 Friends

Merits Brief pp 22-28. See 1000 Friends of Oregon (Wasco County), 299 Or at

352, n 6 (analyzing effect of ORS 197.732 on former Goal 2, Part II). 1000

Friends’ assertion is tantamount to challenging Jackson County’s findings of

fact. Those findings are supported by substantial evidence and are binding on

review. See ORS 197.732(6)(a) (LUBA bound by findings of fact supported by

substantial evidence); ORS 197.850(8) (court cannot substitute its judgment of

LUBA as to any issue of fact).

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LCDC did not intend to restrict the universe of locational attractors to

“rural energy facilities.” If LCDC had so intended, it would have said so,

especially given that it did say so in very next subsection of the rule. See

OAR 660-004-0022(4)(a)(B)(i) (industrial use must be near a “rural energy

facility”). That conclusion is reinforced by OAR 660-004-0022(3)(a) and (b).

Pursuant to those subsections, LCDC has directed local governments to

consider unique resources on agricultural land or forest land and to consider

hazards of locating the proposed use inside the UGB. Such considerations are

absent from OAR 660-004-0022(3)(c) and should not be inserted under the

guise of rule interpretation, which is not permitted under Oregon law. See City

of Klamath Falls v. Envt’l. Quality Comm’n, 318 Or 532, 543, 870 P2d 825

(1994).

2. The Residual Reason For Justifying an Exception.

The “residual” reason for justifying an exception provides that the

“reasons shall justify why the state policy embodied in the applicable goals

should not apply.” OAR 660-004-0022(1). Such reasons include but are not

limited to showing that “[t]here is a demonstrated need for the proposed use or

activity, based on one or more of the requirements of Goals 3 to 19,” together

with two additional, alternative requirements. Id. For purposes of this review,

the question presented is whether the demonstrated need for the Facility can be

based on the requirements of Goal 13 (Energy Conservation).

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Goal 13 provides:

“To conserve energy.

“Land and uses developed on the land shall be managed and

controlled so as to maximize the conservation of all forms of

energy, based upon sound economic principles.”

OAR 660-004-0000(13). Goal 13 undeniably contains a requirement to manage

land and uses on land so as to “maximize the conservation of all forms of

energy, based on sound economic principles.” The energy conservation

requirement in Goal 13 can, in appropriate circumstances, demonstrate the need

for a goal exception, which, of course, is correct given that Goal 13 is included

in the list of goals whose requirements can demonstrate a need for a proposed

use. See OAR 660-004-0022(1)(a) (demonstrated need based on “requirements

of Goals 3 to 19”).

The issue presented on review is whether Goal 13 imposes a requirement

that demonstrates the need for the Facility. DLCD and 1000 Friends appear to

misunderstand OR Solar 7’s position. OR Solar 7 is not arguing that Goal 13

requires the development of renewable energy in all circumstances. OR Solar 7

contends that the development of renewable energy projects, such as the

Facility, is an approach that Jackson County has chosen to satisfy Goal 13’s

requirement to conserve all forms of energy in accordance with Goal 13 and its

guidelines. ORS 197.015(9) (guidelines are “suggested approaches designed to

aid” local governments in carrying out the goals).

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The Jackson County Comprehensive Plan, Chapter 11, contains its

approach for carrying out the requirements of Goal 13. Rec. 000102-127.

Jackson County’s energy conservation goal is to “effect the optimum

conservation of energy and use of local renewable resources.” Rec. 000102

(emphasis added). There can be no reasonable dispute that the County

understood Goal 13’s energy conservation mandate to include the option of the

development of renewable energy. Given that it has acknowledged the

County’s comprehensive plan as compliant with the goals, including Goal 13,

LCDC has determined the development of renewable energy to be an allowable

approach for satisfying the requirements of Goal 13. See ORS 197.251(1)

(LCDC acknowledges comprehensive plan compliance with goals).

Because it has chosen the development of renewable energy as a means

to achieve the energy conservation requirements of Goal 13, Jackson County

properly concluded that there is a demonstrated need for the Facility under

OAR 660-004-0022(1)(a). DLCD’s and 1000 Friends’ arguments to the

contrary should be rejected.6

6 The development of renewable energy is within the ambit of Goal 13’s

requirement to maximize the conservation of “all forms of energy.”

(Emphasis added.) Sources of electrical power are generally divided into

renewable and non-renewable forms. Non-renewable energy includes fossil

fuels, such as coal, while solar power is a form renewable energy.

The development of renewable solar power as a substitute for fossil fuels is

undeniably a form of energy conservation and a primary tool at the state,

national, and international levels to reduce greenhouse gas emissions and

mitigate the effects of climate change.

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III. CONCLUSION

For the reasons set forth in this reply brief, OR Solar 7 requests that the

Court reverse the Court of Appeals. In the event of a remand to LUBA,

OR Solar 7 asks the Court to instruct LUBA to conduct its remand proceedings

in a manner that abides LCDC’s intent to harmonize state land use and energy

policies and in a manner that is congruent with federal law.

Respectfully submitted.

DATED this 7th day of February, 2019.

KARNOPP PETERSEN LLP

s/ Josh Newton

Josh Newton, OSB No. 983087

Of Attorneys for Petitioner on

Review, OR Solar 7, LLC

16360-008(d)\1415177_7

CERTIFICATION OF COMPLIANCE

WITH BRIEF LENGTH AND TYPE SIZE REQUIREMENTS

Brief length

I certify that (1) this brief complies with the word-count limitation in

ORAP 5.05(1)(b)(E) and that (2) the word count of this brief (as described in

ORAP 5.05(1)(a)) is 3,884 words.

Type size

I certify that the size of the type in this brief is not smaller than 14 point

for both the text of the brief and footnotes as required by ORAP 5.05(3)(b)(ii).

DATED this 7th day of February, 2019.

KARNOPP PETERSEN LLP

s/ Josh Newton

Josh Newton, OSB No. 983087

Of Attorneys for Petitioner on Review

OR Solar 7, LLC

16360-008(d)\1415177_7

NOTICE OF FILING AND PROOF OF SERVICE

I certify that I filed this Reply Brief on Merits with the Appellate Court

Administrator on this date by using the appellate courts’ eFiling system.

I certify that service of a copy of this Reply Brief on Merits will be

accomplished on the following participants in this case, who are registered

users of the appellate courts’ eFiling system, by the appellate courts’ eFiling

system at the participant's email address as recorded this date in the appellate

eFiling system:

Meriel L. Darzen, OSB No. 113645

1000 Friends of Oregon

133 SW Second Avenue, Suite 201

Portland, OR 97704

Attorney for Respondent on Review

1000 Friends of Oregon

Denise G. Fjordbeck, OSB No. 822578

Attorney-in-Charge

Civil/Administrative Appeals

1162 Court St. NE

Salem, Oregon 97301-4096

Attorney for Respondent on Review

Department of Land and Conservation

Development

Damien R. Hall

Ball Janik LLP

101 SW Main Street, Suite 1100

Portland, Oregon 97204

Attorney for Amicus Curiae Oregon

Solar Energy Industries Association

Timothy J. Bemasek

Dunn Carney Allen

851 SW 6th Avenue, Suite 1500

Portland, Oregon 97204

Attorney for Amicus Curiae Oregon

Farm Bureau Federation

DATED this 7th day of February, 2019.

KARNOPP PETERSEN LLP

s/ Josh Newton

Josh Newton, OSB No. 983087

Of Attorneys for Petitioner on Review,

OR Solar 7, LLC